10 Cheap Pharmaceutical Stocks to Buy According to Analysts

3. Merck & Co., Inc. (NYSE:MRK)

Price Target Upside: 46.72% 

Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its pharmaceutical division sells vaccinations and pharmaceuticals for human health, which usually include both preventative and therapeutic ingredients. A variety of vaccinations and veterinary pharmaceutical products are developed, discovered, produced, and marketed by its Animal Health sector.

The company’s sales outlook is being adversely affected by certain factors. For example, because of low discretionary spending, it has temporarily halted the distribution of its HPV vaccine Gardasil to China until the middle of 2025. Merck & Co., Inc. (NYSE:MRK) maintains excellent operations despite these short-term difficulties, which are bolstered by high demand for its inventive and varied portfolio. The company’s Keytruda cancer treatment medication is doing well, and the introduction of Winrevair, a medication for pulmonary arterial hypertension (PAH), is also helping to increase revenue growth.

Merck & Co., Inc. (NYSE:MRK) has a competitive edge in the market due to its pipeline, which includes over 20 novel growth drivers with blockbuster potential. Its late-stage pipeline in cardiometabolic, cancer, and infectious disorders further supports its prospects for the future. The firm is positioned as an appealing investment with a strong long-term development trajectory because of its innovative pipeline, diversified portfolio, and good commercial execution, which provide it resilience against short-term setbacks.

The investment management firm GreensKeeper Asset Management published its investor letter for the third quarter. The fund said the following:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”